Problem setting. At the present stage of market relations development there is a need to use new approaches to create sustainable innovative enterprise development.
Recent research and publications analysis. Institutional dimensions of innovation development, its status and dynamics are studied by N. M. Lisiecka, M. V. Haman, G. B. Kleiner, V. M. Polterovich, etc.
Paper objective. The article’s purpose is to identify the features of innovative activity in Ukraine and the state’s role in creating a general institutional coordinates for the entity as element of the system.
Paper main body. An innovative approach is a systematic process of qualitative changes output goods, means of labor, objects of labor, technology, organization of production and management. Aim of this process is enhancing the competitiveness and production efficiency. Innovative approach allows to provide status of the innovation sustainability of economic entities and classify it as sustainable innovative enterprise. The institutional environment entity is the elements of institutional system which have the force of binding rules, criteria and instructions and therefore directly or indirectly restrict the right affordable alternatives. The issue of freedom, including the freedom of choice and decision, is one of the fundamental in the institutional Economics. Institutional social system that provides its existence as an aggregate of functioning subjects must include: institutions of ownership (ownership, right to inherit, right to dispose, and their protection); the institutions of freedom (security of person, free access to information, freedom of choice and responsibility for selecting); innovation institute (institutions of property and freedom plus the institutions of competition).
Conclusions of the research. The state can help to create effective owner in two directions. Firstly, is a stable property, its absolute protection and a clear specification all their rights. Secondly, is stability of the national currency.
Short Abstract for an article
Abstract. The innovative component activities of the enterprise as the institutional factor is considered in the article. It was proved that a set of rights, powers and duties recognized by all members of the institutional system constitutes the institutional status. These rights and powers are given to an entity and provide an authorized system access to a specific array of resources. Active innovation provides strategic stability of enterprises. Therefore, the solution of economic, social, managerial and personal problems in modern society provides specific innovative style of management. Reliance on innovations, novation, systematic and constant innovation is the basis of this style. The role of the state in an unstable socio-economic situation was considered. The threat of decreased competitiveness
of domestic entities continues to be high enough without the state support. It was proved that the state as a regulator of the institutional environment has the crucial role in establishing of the institutional medium.